scholarly journals A financial evaluation of price formulae

1985 ◽  
Vol 16 (2) ◽  
pp. 98-102
Author(s):  
J. J. Doppegieter ◽  
I. J. Lambrechts
Keyword(s):  
Simulation Model ◽  
Cash Flow ◽  
Financial Structure ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Financial Evaluation ◽  
Internal Rate ◽  
Price Formula

This is the second in a series of four articles on price formulae/determination. In the first a simulation model was developed and the criterion of evaluating the model, the internal rate of return, was introduced. In this article two price formulae are simulated and analysed in accordance with principles discussed in the first article. Significant differences emerge between the two formulae. The internal rate of return of formula B (which is expressed in terms of replacement values) is continuously more than 100 % higher and more stable than that of formula A (which is expressed in terms of historical values). It also appears that it can be misleading to judge the profitability of a price formula against the allowed rate of profitability. The adequacy of the price formulae for inflation is judged by examining the internal rate of return in a situation with and without inflation and by calculating the ratio between depreciation allowed and replacement investments. Finally, the effect of the formulae on financial structure is analysed by calculating a liquidity (based on cash flow) and a solvability ratio. In conclusion, it appears that formula B is superior to formula A, mainly as a result of differences between the price formulae.

TINJAUAN STUDI KELAYAKAN USAHA BADAN USAHA MILIK DESA (NAGARI) KAMANG HILIA SEJAHTERA KENAGARIAN KAMANG HILIA, KECAMATAN KAMANG MAGEK, KABUPATEN AGAM, PROVINSI SUMATERA BARAT

2018 ◽  
Vol 3 (2) ◽  
pp. 160
Author(s):  
Halkadri Fitra ◽  
Salma Taqwa ◽  
Charoline Cheisviyanny ◽  
Abel Tasman ◽  
Nurzi Sebrina
Keyword(s):  
Cash Flow ◽  
Net Present Value ◽  
Average Rate ◽  
Flow Analysis ◽  
Payback Period ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate

Penelitian ini bertujuan untuk melihat kelayakan aspek keuangan usaha grosir sembako Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera di Kenagarian Kamang Hilia Kecamatan Kamang Magek Kabupaten Agam Provinsi Sumatera Barat yang dilakukan pada tahun 2018. Penelitian bersifat deskriptif kuantitatif dengan menggunakan metode cash flow analysis, payback period, net present value, profitability index, internal rate of return, dan average rate of return. Hasil penelitian menunjukkan bahwa nilai net cash flow Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera adalah positif yaitu Rp.21.774.000, nilai payback period adalah 1,15 tahun, nilai net present value positif sebesar Rp.10.680.034,47, nilai profitability index adalah positif 1,37, sedangkan nilai internal rate of return adalah 46,7% dan nilai average rate of return adalah 57,23%. Berdasarkan standar penilaian maka semua metode yang digunakan memberikan kesimpulan bahwa usaha grosir sembako milik Badan Usaha Milik Desa (Nagari) Kamang Hilia Sejahtera dalam kategori layak untuk dilaksanakan.

VALUASI BISNIS BARU DAN OPTIMAL CAPITAL PERUSAHAAN JASA INDUSTRI (MAKLON) BAGI UMKM KERIPIK KEMASAN. (STUDI KASUS: PT KRISPINDO)

2020 ◽  
Vol 12 (2) ◽  
pp. 254-269
Author(s):  
Helena Dewi
Keyword(s):  
Cash Flow ◽  
Net Present Value ◽  
Cost Of Capital ◽  
Free Cash Flow ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Going Concern ◽  
Internal Rate ◽  
New Business ◽  
Equity Ratio

The increase of MSMEs in the food and beverage industry recently experiencing significant growth, especially during the Covid-19 pandemic. According to statistical data released by the Badan Pusat Statistik (BPS) in November 2020, the food industry dominated Micro and Small businesses in 2019 for 36.23%. The increasing number of MSME businesses in this sector becomes an opportunity for the processing services industry (contract manufacturer) to help MSMEs with all limitations. This study conducted a case study on PT. Krispindo as a company engaged in processing services (contract manufacturer) in the snack sector. This research aims to assess (valuation) new business proposed by PT. Krispindo in terms of optimal use of debt and equity for the company and also investment returns that can be given to investors. In addition, this research also aims to assist the company in making decisions for the following period project, decision to continue or discontinue the business. This study used optimal Cost of Capital (WACC) and Debt-to-Equity Ratio (DER) in setting optimal business capital. To measure investment return expectations for investors, the study used the company's Net Present Value (NPV), Free Cash Flow to Firm (FCFF) and Internal Rate of Return (IRR) approaches. To find out whether or not the business is further, this study uses Terminal Value Asset (TVA) and On Going Concern Value from the business obtained when the project ending. The results prove using debt in capital has more benefit for the company and the business can continue after the projection period ends.   Keywords: New Business Valuation (NPV), Debt-to-equity ratio (DER), Average Cost of Capital (WACC), Free Cash Flow to Firm (FCFF), Internal Rate of Return (IRR), Terminal Value Asset (TVA) and On Going Concern Value

scholarly journals A sensitivity analysis of price formulae

1985 ◽  
Vol 16 (4) ◽  
pp. 181-184
Author(s):  
J. J. Doppegieter ◽  
I. J. Lambrechts
Keyword(s):  
Inflation Rate ◽  
Rate Of Return ◽  
Model Parameters ◽  
Relative Importance ◽  
Internal Rate Of Return ◽  
Short Term ◽  
Tax Rate ◽  
Internal Rate ◽  
Price Formula ◽  
Statutory Tax Rate

This is the last in a series of four articles. In the first article two price formulae were discussed and in the subsequent two articles two methods of analysis were demonstrated. In this article a third method of analysis concerning the sensitivity of some selected model parameters is presented. Four parameters have been selected, i.e. the allowed profitability rate, the inflation rate, the growth rate, and the statutory tax rate. The value of each factor has been increased and decreased by 10% to test the sensitivity of each. In both price formulae the allowed profitability rate has the highest relative importance, followed by the inflation rate. Furthermore, in price formula A some parameters have no or only a small short-term effect on the internal rate of return, e.g. the statutory tax rate. In addition, the internal rate of return of formula A is generally more volatile to changes in the variables analysed than that of formula B. This type of analysis could be very helpful for negotiations between price/tariff-determining bodies and price-controlled undertakings/industries.

The internal rate of return of fuzzy cash flow

1991 ◽  
Vol 14 (2) ◽  
pp. 3-13 ◽  
Author(s):  
L. Biacino ◽  
M. R. Simonelli
Keyword(s):  
Cash Flow ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Internal Rate

scholarly journals A capital investment approach to price formulae/determination

1985 ◽  
Vol 16 (1) ◽  
pp. 35-39
Author(s):  
I. J. Lambrechts ◽  
J. J. Doppegieter
Keyword(s):  
Simulation Model ◽  
Capital Investment ◽  
Price Control ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Internal Rate ◽  
Methods Of Evaluation ◽  
Conventional Methods ◽  
Definition Of ◽  
Over Time

In an analysis of ten widely used price-control formulae it was shown that the formulae took into consideration a variety of different stipulations such as the calculation of funds employed, the definition of profit and the profitability rate allowed. Furthermore it is maintained that the commonly used intuitive and/or conventional methods of evaluation are subject to various shortcomings. Therefore, it can be inferred that it is virtually impossible to compare different price formulae in isolation. To overcome this problem a simulation model, based on certain assumptions, has been developed. The model compares and evaluates the adequacy of various price formulae over time (dynamically) in different ways, i.e. several ratios and criteria are calculated with the internal rate of return being the primary one. In the remaining three articles, the simulation model will be applied to the two formulae presented in this article.

STUDI INVESTASI PENGEMBANGAN PERUMAHAN DI MALANG

2017 ◽  
Vol 11 (1) ◽  
pp. 32
Author(s):  
Fadjar Purnomo
Keyword(s):  
Cash Flow ◽  
Net Present Value ◽  
Rate Of Return ◽  
Cost Ratio ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Benefit Cost Ratio ◽  
Internal Rate ◽  
Benefit Cost

Semakin meningkatnya penduduk Kota Malang merupakan peluang besar bagi developer untuk mengembangkan usahanya di bidang perumahan. Namun sebelum menanamkan modalnya untuk berinvestasi apalagi dalam jumlah besar seharusnya developer melakukan studi kelayakan apakah investasi tersebut menguntungkan atau tidak. Penelitian ini bertujuan untuk mengetahui kelayakan finansial dalam investasi pengembangan perumahan, serta mengetahui tingkat sensitivitas perubahan suku bunga dan biaya langsung.Data penelitian yang digunakan berupa data sekunder yaitu gambar perencanaan, harga satuan pekerjaan dari developer, biaya pajak, biaya perijinan, UKL/UPL/AMDAL, biaya pengukuran tanah, biaya operasional, biaya promosi, periode investasi, dan lain-lain. Pengolahan data secara deskriptif untuk menentukan cash flow proyek. Berdasarkan cash flow yang didapat selanjutnya dilakukan analisis kelayakan finansial menggunakan parameter PP, NPV, IRR, dan BCR. Dan selanjutnya dilakukan analisis sensitivitas tingkat kelayakan terhadap perubahan suku bunga dan biaya pengeluaran.Hasil penelitian menunjukkan bahwa investasi pengembangan suatu perumahan di Malang pada suku bunga 12,79% layak secara finansial karena nilai  parameter pay back periode (PP) terjadi pada tahun ke-7, nilai net present value (NPV) sebesar Rp 34.130.813.565-, nilai benefit cost ratio (BCR) sebesar Rp 1,14, nilai internal rate of return (IRR) sebesar 16,67%. Perubahan suku bunga dan perubahan biaya pengeluaran cukup sensitive terhadap kelayakan finansial dalan investasi ini. Kata-kata kunci: finansial, investasi, kelayakan, pengembanganperumahan

scholarly journals Analisa Kelayakan yang Mempertimbangkan Ketidakpastian pada Penambahan Gudang PT Media Belanja Teknologi

2021 ◽  
Vol 5 (2) ◽  
pp. 273
Author(s):  
Muchamad Hengki Riawan Putra
Keyword(s):  
Cash Flow ◽  
Net Present Value ◽  
Payback Period ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate

Keputusan investasi merupakan suatu alternatif kebijakan yang dilakukan perusahaan dalam mengembangkan usahanya agar mendapatkan keuntungan yang diharapkan. Penambahan gudang baru yang dilakukan oleh PT. Media Belanja Teknologi untuk menaikkan omset penjualan dan pemenuhan ketersediaan stock. Penelitian ini untuk mengkaji keputusan rencana investasi dapat diterima atau tolak akibat ketidakpastian penjualan yang disebabkan oleh Covid 19. Untuk mengambarkan ketidakpastian atas penjualan tersebut, peneliti mengkategorikan menjadi 3 kondisi penjualan yaitu kondisi sepi, normal dan ramai. Data yang digunakan adalah data perusahaan dan data pendukung lainnya. Data yang digunakan dalam analisa adalah laporan keuangan perusahaan.  Sedangkan data pendukung adalah perencanaan investasi, data perkiraan cash flow pada periode yang akan datang. Beberapa metode perencanaan investasi adalah discounted payback period, net present value, internal rate of return, dan profitability indeks. Hasil analisis yang dilakukan terhadap ketiga kondisi tersebut menghasilkan discounted payback period kurang dari 5 tahun, NPV yang dihasilkan bernilai positif, dan PI juga menunjukkan hasil lebih besar dari 1 (satu). Sesuai kriteria penerimaan investasi, maka hasil analisis yang ada dapat dijelaskan bahwa rencana investasi PT. Media Belanja Teknologi dapat diterima untuk dilakukan. Kata kunci: Investasi, Discounted Payback Period, NPV, PI

scholarly journals Methodical approaches to the assessment of investment attractiveness of agricultural enterprises

2019 ◽  
Vol 21 (93) ◽  
pp. 63-69
Author(s):  
R. M. Myniv
Keyword(s):  
Cash Flow ◽  
Net Present Value ◽  
Cash Flows ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Investment Projects ◽  
Agricultural Enterprises ◽  
Internal Rate ◽  
Dynamic Methods

Evaluation of investment efficiency is central to the process of justifying and selecting possible options for investing in investment projects, and is therefore a key to successful implementation of investment activities of agricultural enterprises. The main directions of financing of investment projects of agricultural enterprises are: purchase or construction of unfinished construction objects, new construction, expansion of existing enterprises, reconstruction of existing enterprises and technical re-equipment of existing enterprises. Two main groups of methods of assessing the cost-effectiveness of investment projects have become most widespread: static and dynamic. Static methods involve the calculation of indicators based on undiscounted cash flows. Dynamic methods, on the contrary, take into account the change in the value of money over time and imply bringing the values of all cash flows to the same period by discounting or compounding. Dynamic methods for assessing the effectiveness of investment projects include the following basic methods that rely on most modern Ukrainian enterprises, such as net present value cash flow (NPV), internal rate of return (IRR), payback period (DPP) and project profitability index (PI). On their basis the basic methods of selection of investment projects of agricultural enterprises are formed. Net Present Value (NPV) calculation. is based on comparing what will be invested in the future with what is invested now. The Profitabale Index (PI) is directly related to net present value and is defined as the ratio of the discounted cash flow to initial investment. The IRR (Internal Rate of Return) is the discount rate at which the projected cash inflows are equal to the project's discounted cash flows. As indicators of the effect in calculating the overall efficiency of investments, it is advisable to use changes in the following values of growth: revenue from the sale of enterprise products; gross income; profit before tax; net profit; cash flow; clean products. Gross and net investment should be included in the costs. The use of qualitative methods in investment analysis is due to the following reasons: the subjectivity of the phenomena or characteristics studied; lack or lack of necessary information; inability to analyze objective and acceptable methods; lack of research object (to be created during project implementation). Quantitative methods for evaluating agricultural investment projects include methods of probability theory and mathematical statistics, as well as economic and statistical methods.

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